Which of the following represents a positive economic statement?

Correct Answer: Answer

Correct Answer: personal income taxes

Explanation:

The largest proportion of federal revenues comes from personal income taxes. Almost half of all federal revenue (47 percent) comes from individual income taxes.

Correct Answer: The Supreme Court strikes down a law that bans importing inefficient automobiles

Explanation:

Domestic policy is an area of public policy which concerns laws, government programs, and administrative decisions which are directly related to all issues and activity within a nation's borders.

It differs from foreign policy, which refers to the ways a government advances its interests in world politics.

 

Hence, Option A, The Supreme Court strikes down a law that bans importing inefficient automobiles is an example of domestic policy action.

Correct Answer: Credit Policy

Explanation:

Open market operations (OMO) refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system.

Correct Answer: Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency The basic objective of monetary policy is to assist the economy in achieving a full-employment, noninflationary level of total output Cause-effect chain: Changes in the money supply affect interest rates, which affect investment spending and therefore aggregate demand

Correct Answer: Ministry of Commerce and Industry

Explanation:

The India's commerce and industry ministry has started the exercise to revise base year to 2017-18 for computation of wholesale inflation with a view to present more realistic picture of the price situation

 

In May last year, the government revised the base year for WPI-based inflation to 2011-12 to give a better indication of changes in prices of commodities.

 

The new index, with 2017-18, is expected to have new items, which would provide a more realistic picture of price rise and its impact on people.

 

Most of the additions could be in the manufactured products category. Currently, the index has a total of 697 items, including primary articles, fuel and power and manufactured products.

Correct Answer: Economic resources are limited.

Explanation:

Economic resources are those goods and services that can be converted into valuable products for individual and business purposes.

There are four major types of economic resources:

1. land,

2. labor,

3. capital and

4. entrepreneurship.

 

Land and labor are natural and human resources, while capital means physical resources or money.

Entrepreneurship converts these resources into usable goods.

 

However, resources have finite values, and proper utilization depends on economic systems and economic decisions.

Correct Answer: Salary refers to the fixed amount paid on a weekly, bi-weekly, or monthly basis.

Explanation:

A salary is best described as a fixed amount of income that is paid to an individual on a weekly, bi-weekly or monthly basis.

 

A salary can also be described as the annual earnings paid out over a year.

Correct Answer: its supply or demand is not sensitive to price changes.

Explanation:

If the percent change in quantity demanded is less than the percent change in price, economists label the demand for the good as inelastic.

A good that is inelastic does not have very stretchy demand. In economic terms, the quantity demanded does not change a lot when the price changes.

 

So, if the price of a good increases by 10 percent and the quantity demanded decreases by only 5 percent or less than 10, that good is said to have inelastic demand.

 

Hence, in this case, consumers are not considered very sensitive, or responsive, to a change in the price of that good.

Correct Answer: the higher the price of a good, the lesser the quantity demanded

Explanation:

The law of demand implies that "The higher the price of a good, the lesser the quantity demanded".

 

 

For example:

If the rate of a mobile phone increased, the quantity demanded by the customers is decreased.